SEC Shifts Focus with Revamped Anti-Fraud Unit
The Securities and Exchange Commission (SEC) has given its anti-fraud unit a makeover. This move is designed to better protect everyday investors from scams in new tech areas. The revamped unit, now called the Cyber and Emerging Technologies Unit (CETU), shows how the government is changing its stance on things like cryptocurrency and cybersecurity.
The CETU will have around 30 fraud experts from different parts of the SEC. It takes the place of the old Crypto Assets and Cyber Unit. Laura D’Allaird is in charge. This new unit will work alongside a crypto task force that started in January.
Mark Uyeda, the acting SEC Chairman, said the unit will protect investors and help new ideas grow. He explained that it aims to stop people from using new tech to trick investors and make them lose trust.
This change is part of a plan to make it easier to watch over new technologies. The SEC has been talking a lot about cybersecurity, especially when it comes to making companies report data breaches and keep investors updated on their risk plans.
Aloke Chakravarty, a partner at Saul Ewing, says the new unit seems to be moving away from strictly targeting crypto companies. Instead, it looks like the focus will be on broader cybercrimes.
Michael Lowe, a partner at Troutman Pepper Locke, thinks the unit’s approach signals the SEC might not treat all digital assets the same way it used to. However, he doesn’t see big changes in how the agency enforces rules about cybersecurity reporting.
